Prayut allays Japanese fears

Prayut allays Japanese fears

Firms want assurances of Thailand's political stability before further investment

Thai prime minister calls for deeper Japan business ties Thai Prime Minister Prayut Chan-o-cha (far L) talks with Japan Business Federation Chairman Sadayuki Sakakibara (far R) in Tokyo on Feb. 9, 2015. Prayut called for the business lobby known as Keidanren to promote more technological support and investment by Japanese companies to bolster the Southeast Asian country's economic growth. (Kyodo)
Thai prime minister calls for deeper Japan business ties Thai Prime Minister Prayut Chan-o-cha (far L) talks with Japan Business Federation Chairman Sadayuki Sakakibara (far R) in Tokyo on Feb. 9, 2015. Prayut called for the business lobby known as Keidanren to promote more technological support and investment by Japanese companies to bolster the Southeast Asian country's economic growth. (Kyodo)

Prime Minister Prayut Chan-o-cha Monday urged Japanese businesses operating in Thailand to raise any trade and investment issues needing to be resolved this year while he remains in power.

During his meeting with the powerful Keidanren (Japan Business Federation), comprising more than 1,300 companies, 122 industrial organisations and 47 regional organisations, he also promised to take care of Japanese businesses in Thailand.

Keidanren chairman Sadayuki Sakakibara and the chairman of its board of counsellors, Hiromichi Iwasa, both raised the issue of a return to civilian rule with Gen Prayut.

The prime minister spent a considerable amount of time explaining the reasons for the May 22 coup but reiterated a return to civilian rule would occur late this year or early next.

Gen Prayut said he and his delegation were happy to be in Japan, a country he said "did not abandon us".

"I understand your concern about Thai democracy," he said, adding that the government was running the country using normal mechanisms but admitted "special measures" were needed to ensure peace and stability was maintained in the country.

"We now have a government made up partly of military officers and civilians. We need special laws to maintain peace and forge reforms in 11 areas.

"If we do not administer the country in this way, no one can guarantee there will not be problems. This is the only way to run the country and ensure your investments are taken care of."

The prime minister said Thailand was now in the second stage of the roadmap and that by September the new charter would be completed.

Once organic laws are drafted, elections can be expected towards year-end or in early 2016.

Gen Prayut said he was not opposed to democracy in other countries or Japan, but Japan did not face the same situation that Thailand experienced last year, when it was stuck in a situation in which laws could not be enforced and polls could not be held.

"That is why we had to step in to sort out the problems. We're not in conflict with those who disagree with us, but I admit feeling disappointed," he said, a reference to comments made by US Assistant Secretary of State Daniel Russel during his recent visit to Thailand.

"If all elected [Thai] governments were like Japan's, then there would be no problems, and we urge the Japanese to help Thai politicians have ethics. Thailand's problems occurred due to politics, not because of me. Please be fair to me. My government does not want to stay in power long.

"Do not let the word 'democracy' stop progress in our ties. If it is used to obstruct progress, then nothing will move forward."

Gen Prayut said he wanted to use his visit to Japan to "create history" in Thai-Japanese relations.

Earlier, Mr Sakakibara told Gen Prayut that Japanese businesses, of which there are about 4,000 operating in Thailand, were interested in cooperation in the areas of rail, port and infrastructure development, especially if it benefited the Mekong region.

In response, Gen Prayut said while he welcomed more Japanese investment in Thailand, he also wanted to see more balanced benefits for Thailand.

He urged Japanese companies to invest in the six planned special economic zones the government is setting up and voiced a readiness to support Japan's policy of Thailand Plus One.

The prime minister also said he wanted to see the Thailand Economic Partnership Agreement fully utilised.

Thailand also seeks to expand collaboration on "new-generation industries" — scientific, high-technology and innovation education, green economy and renewable energy — as well as human resource development.

Thailand is a major recipient of Japanese investment, and therefore training Thailand's workforce would not only increase the skills of Thai workers but also directly benefit Japanese investors.

Apart from meeting the Keidanren Monday, Gen Prayut also met separately with top executives of Mitsubishi, Mitsui, Honda and Marubeni.

"The official visit of Prime Minister Prayut to Japan itself surely helps to strengthen bilateral economic ties, but Japanese firms would like to obtain reassurance of Thailand's political stability to encourage Japanese investment and business," Shingo Sato, president of Mitsui & Co.(Thailand) Ltd, told the Bangkok Post.

Mitsui has a broad range of business activities and experience in Thailand in such fields as energy, iron and steel products, chemicals, food, infrastructure, motor vehicles, machinery, IT and mobile technology.

"We expressed our intention that we would like to make a contribution to Thailand's sustainable development with new investments and trading in various businesses such as energy, infrastructure, consumer service and foodstuffs," Mr Sato said.

Asked how Japanese firms viewed the current political situation in Thailand, Mr Sato said: "Political instability has been a serious issue for a long time. Although the number of Japanese firms that have a negative feeling about investing in Thailand due to the instability is relatively small, they seriously hope the situation will stabilise as early as possible."

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